Page 10 - Spring 2013 Hardlines Strategies

10 Spring 2013 • Hardlines Strategies
STORE PROGRAMS
Cashing in on Rental
How Blish-Mize Can Keep Your Rental Business Profitable
They will also tell you rental is one of
the best investments they have ever made.
It was easy for the brothers to get
started, too, thanks to the partnership
their wholesaler Blish-Mize has with MTA
Distributors. MTA offers complete product
selection, support and training; everything
the brothers needed when they added
rental to their store.
If you’re just starting out in rental or you
need help building the category, Blish-Mize
and MTA offer big advantages over other
rental programs. Make sure you are taking
advantage of all they have to offer.
Rental is a Hot Category
By getting into the rental business, you’re
tapping into one of the hottest categories
in retailing today. Rental can increase your
margins, increase customer traffic and bring
new customers into your store.
“Given the state of the economy in
the past few years, a lot of stand-alone
rental stores have gone away because
they weren’t diverse enough,” says Mark
Ammerman, sales development at MTA.
“Hardware and rental is a perfect fit.
Customers looking for rental items are
coming to your store anyway.”
The rate of rental is increasing, too. The
American Rental Association (ARA) fore-
casts revenue growth for the rental equip-
ment industry will outperform the general
economy in 2013. It predicts industry rev-
enue from rental will grow 7.6 percent to
reach $33.5 billion this year.
In addition, homeowners looking to save
money are doing more jobs around the
house themselves, which means they will
likely need more tools. Contractors looking
to save money may also be renting tools
instead of buying them.
Start at Your Own Pace
As you’re getting started in rental,
MTA allows you to make as big or as
small of an investment as you want.
Some retailers start small and gradually
add more.
The program with MTA is completely
customizable. It does offer a suggested
start-up package applicable for just
about any hardware or lumber retailer;
however, you can pick and choose the
items you can afford and for which you
have space.
“We’ve had many retailers start out
with just a pressure washer, then the next
month add another tool,” Ammerman
says. “That saves them from laying out a
lot of money all at once. Some customers
Frank Dinges of Dinges Hardware and Rental started offering rental five years ago. Now his selection
includes everything from hand tools to large construction equipment.
L ook around Dinges
Hardware and
Rental in Pleasant
Hill, Mo., and you quickly
realize brothers Frank and
Brian Dinges have invested
a lot of money in the rental
business. Rental items are
on display anywhere they
can find a place for them:
upstairs in the showroom,
downstairs in the basement
and outside the store in
another building.